I have 20,000 for a car and I want to get a 50,000 car. Should I put the whole 20 as a down payment?

Question

Or should I put 5? What is a good thing to do?

Answer 1

Do you make enough to finance 30,000 or more bucks? What are the terms of the financing? Often, when you finance, you end up paying nearly twice what you would have paid if you'd paid in cash.
READ THE FINE PRINT of any financing agreement. Preferably, you want a no interest loan or the lowest interest possible-- but still read every single item in the contract and ask questions if you do not understand something. And, get them to explain in writing. Car salesmen don't like this, but do not be intimidated. Always remember that you are the customer & you're doing them a favor, not the other way around. Don't be afraid to get up and walk away & keep going until you find a dealership which is happy (or happier) to explain all terms to you.
That said, never put all your savings in a car. You could drive off the lot, get into an accident and the insurance will NEVER pay the full purchase price of the car. They won't even replace it with an identical car. You could end up owing money to the company that's financing the car.

I know I sound like the voice of doom, but I am a retired attorney and know of what I speak.

Perhaps you are in a position to afford payments on a 50K car-- but don't put the whole 20K down & be careful about what kind of financing you get. Good luck!!!

Answer 2

Obviously, the more you put down, the less your payment. Check your finances and see what you can handle monthly. Remember too, taxes and insurance. I'd at least find out what the taxes will be and pay them (I would not work them into the final figure and finance them too) and you may also want to pay your insurance in full for the first year. That way, you can get a better grip on your monthly payments and know what's coming up the following year.

Answer 3

Pay cash for a $20,000 car, assuming you make $100,000 a year and you have no debt.

Financing a depreciating asset is a silly thing to do. Most millionaires drive Honda Accords.

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Answer 4

it really is too undesirable your windshield were given smashed. i have heard of this taking position to others as well. Did it take position at your position or in a vehicle park? Does your coverage conceal it? Did you document a police record? The worst I had take position replaced into someone ripped off my "I heart John Kerry" bumper decal in a vehicle park. considering then i have not placed some thing of a political nature on my vehicle because i understand i can not probability any vandalism.

Answer 5

Buy a used vette. Should be able to get a 97 or 98 for 20.

Answer 6

1991--I bought a 53k car---10k trade in, 16k cash---pmnts still over 620 a month---think about this---also if you are under 25 the insurance will eat you alive.

Answer 7

put in five just incase you decide to pull out cause you get broke or something

Answer 8

put 2500

your monthly payments should be cheaper..